Compare Texas Electricity Rates & Energy Prices

October 2024 key insights

• As of October 2024, the average electricity rate in Texas is 14.51 cents per kilowatt-hour (kWh).
• The current lowest Texas electricity rate is 10.8 cents per kWh.
• Use the Choose Energy marketplace to easily compare the best Texas energy plans and rates in your area.

 

The average Texas energy rate is 14.51 cents per kilowatt-hour (kWh), according to the most recent data from the Energy Information Administration (EIA). The Texas energy price is about 13% lower than the national average of 16.62 cents per kWh.

The Energy Reliability Council of Texas (ERCOT) predicts that the grid will have sufficient capacity to meet demand in late summer and into fall. With hot temperatures increasing energy demand, now may be a good time to find a more affordable electricity plan using the Choose Energy marketplace. We can help you compare Texas electricity rates, energy plans, and providers in your area. Enter your ZIP code to search for the best cheap energy company for your home or business.

What is considered cheap electricity in Texas?

The lowest Texas electricity rate on the Choose Energy marketplace is 10.8 cents per kWh for the 1,000 kWh standard monthly usage. At the time of writing, Gexa Energy Express Energy, 4Change Energy, and Frontier Utilities offer the cheapest fixed-rate energy plans on the Choose Energy marketplace.

You can find various types of energy plans on the Choose Energy marketplace. Learn more to help you determine the right Texas energy plan for your needs.

• Fixed-rate plans: Get a consistent rate on your monthly energy bill with a fixed-rate plan. These plans are perfect if you want a predictable bill to avoid energy cost spikes. We recommend fixed-rate plans for most residential customers because they offer protection from unexpectedly high energy bills and allow you to lock in a long-term rate.
• Variable-rate plans: These plans offer flexibility without a long-term contract, but your rate will change based on market conditions. While you may save during low demand, you will experience increased rates during high demand. Variable-rate plans are not ideal for customers who value stability or security. For that reason, we do not recommend variable-rate plans unless you are familiar with how the energy market works and need the flexibility of a short-term option.
• Prepaid and no-deposit plans: You might need to pay a deposit if you don’t meet a provider’s credit requirements. Our marketplace offers no-deposit electricity plans like prepaid energy plans that allow you to skip the deposit and pay for your electricity upfront. While no-deposit plans allow for more flexibility, they often have higher rates than fixed-rate plans.
• Renewable energy plans: All Texas energy plans include a percentage of renewable energy. Some providers specialize in only offering 100% green energy plans, including Gexa Energy.
• Commercial energy plans: Texas businesses can benefit from low rates, competitive plans, and green energy options. Call the number on your screen to receive a custom business electricity quote tailored to your company.

Due to moderate temperatures, Texas energy demand and prices tend to be lower in the fall. Late fall is a great time to consider switching your electricity plan to take advantage of cheaper rates. Here are some of the top energy plans available on our marketplace this October.

• Gexa Energy Eco Saver Plus 12: This plan from Gexa Energy currently offers the lowest rate on our marketplace for those wanting to save on their electricity costs. Customers can receive a $100 bill credit when they use more than 1000 kWh in a month.
• TXU Energy Smart Deal 12: TXU Energy is Texas’s oldest retail electric provider and continues to offer competitive plans. The Smart Deal 12 offers bill credits based on usage and is excellent for households that use more than 1200 kWh of electricity per month.
• TriEagle Energy Silver Eagle 12: TriEagle is popular for offering straightforward pricing. Its plans include bundled pricing, which means they are all-inclusive and have no hidden fees.

In Texas, you have several energy provider options. Consider your priorities and preferences to choose the best provider for your energy needs. For example, if you want a 100% green energy plan, choose a provider such as Gexa Energy or Green Mountain Energy. If you want the cheapest Texas electricity plan, consider Frontier Utilities. The following table lists various energy companies in Texas, the lowest rates, and what it’s best for.

Energy suppliers

In deregulated states, utility companies and electric providers have different roles. Residents have the power to choose their Texas electricity provider, which is responsible for selling electricity to consumers. With deregulation in Texas, there’s more competition among energy providers. You can compare energy plans from various providers to secure a low electricity rate and save money on your energy bills.

Utility providers

The utility company is responsible for transmitting electricity, maintaining electrical infrastructure, and restoring power during an outage. Your address determines your utility, and you cannot change it. Here are the main utility companies serving residents and businesses across the Lone Star State:

• AEP Texas Central
• AEP Texas North
• Centerpoint Energy
• Oncor Electric Delivery
• Texas-New Mexico Power

The Price to Compare (PTC) in many deregulated states is the utility company’s default rate if you do not sign up for a specific energy plan from an independent provider. In Texas, you cannot sign up for an energy plan through your utility company. Instead, you’ll automatically be enrolled in an energy plan with a provider under the default rate if you do not sign up for an alternative plan. You can secure a lower rate by choosing your own plan.

Average Texas electricity rate	Lowest Choose Energy rate
14.51 cents/kWh	10.8 cents/kWh

In Texas, the average electricity bill for residential customers is $170.93 per month. The total is calculated by multiplying the average electric usage of 1,178 kWh by the average electric rate (14.51 cents/kWh). The average monthly bill in Texas is about 13% higher than the national average bill of $149.42 per month.

About 85% of Texas has a deregulated energy market, giving residents and businesses the power to choose their electricity provider. With deregulation, energy suppliers compete to offer you the best electricity rate and customer service. As a result, you can save money on your energy bills and find an energy plan in Texas that fits your electricity usage. The term “power to choose” is common in deregulated markets. It is also the name of the official website of the Public Utility Commission of Texas (PUCT), the regulatory body overseeing the Texas electricity market.

Choose Energy is not affiliated with Power to Choose, powertochoose.org, or the PUCT.

PowerToChoose.org allows customers to browse available providers and plans in their area. However, consumers are redirected away from the site when they attempt to sign up for a plan.

Choose Energy is different: Our easy-to-use online marketplace displays electric rates, plans, and providers in your area — all in one place. We list independent electricity provider ratings, term lengths, rate types, and more to make signing up for a new plan quick and easy. We also have useful buying guides and resources to help you understand the energy industry.

Choose Energy can help you sign up or switch to a cheap light company near you. Compare and choose a plan that fits your needs in a few easy steps.

• Enter your ZIP code. Compare plans and rates in your area on the free Choose Energy marketplace to find what works for you. Use the filters to find tailored results, like a specific rate type, term length, or amount of green energy.
• Pick a plan. When you find one you like, sign up online in a few minutes. If you need help choosing, call the number on your screen for an agent.
• Enjoy your new plan. Your Texas energy supplier will handle the set-up so you can relax without power interruption.

If you are moving to Texas, you can keep your current energy plan if your provider serves your new address. You can switch electricity providers if you want a new provider or if your current one does not service your new location. You will not pay an early termination fee if you move to an address your current provider does not cover.

Shop Texas energy plans on Choose Energy’s marketplace up to 90 days before moving, and select your move-in date when you sign up. Your provider will handle the rest. Most Texas homes have smart meters, meaning you will not need to schedule a technician visit to begin electricity service. Instead, your new provider will activate your service remotely on your selected date.

Choose Energy is a free energy marketplace where you can compare electricity plans and providers in your area. We partner with top providers to offer residential and business energy plans in deregulated areas of Texas and many other states. Enter your ZIP code to explore today’s electricity rates for your home. If you find a plan you like, we can help you sign up in a matter of minutes. You can also call our energy experts at the number on your screen to sign up for a plan or discuss questions about rates and providers.

Why should I shop with Choose Energy?

Choose Energy has operated in deregulated energy markets since 2008, establishing relationships with the best energy companies in Texas and nationwide. The electricity rates you’ll find on our marketplace are all-inclusive, helping you find the lowest rate and a plan that works well for your energy needs.

We have over 560 five-star reviews on Trust Pilot and are actively seeking ways to continue helping our customers find solutions to their energy needs. If you are ready to learn more about how Choose Energy can help you, enter your ZIP code to find energy plans and prices in your area.

Are Texas electricity rates going up?

Texas energy prices typically increase in the summer and decrease as temperatures decline in the cooler months. According to the latest EIA energy outlook, oil prices are rising slower than expected due to lower natural gas prices. Electricity prices fluctuate daily based on market prices. You can use the Choose Energy marketplace to explore the lowest energy rates in Texas at any time of the year.

Why does Choose Energy run a credit check?

Our partners require a soft credit check (which doesn’t affect your score) to determine if your credit meets their requirements. The provider may ask for a deposit to begin service if your credit score falls below that threshold. We’ll check your score with all providers on our marketplace at once so you can find the best electricity rates in Texas. Check out our no-deposit guide for more information about the credit check process.

How do I find cheap electricity plans in Texas?

The lowest electricity rate in Texas on our marketplace is 10.8 cents/kWh from Gexa Energy. Providers like Express Energy, 4Change Energy, and Direct Energy also frequently offer some of the cheapest electricity rates in Texas. Energy rates fluctuate, but Choose Energy can help you find the best cheap energy company any time of year. Enter your ZIP code to compare rates and electricity plans all in one place.

How quickly can I set up electricity service in Texas?

If you are signing up for a new plan and have a smart meter installed at your home (most Texans do), you might start service the same day you sign up. Some providers offer same-day electricity if you order before 3 p.m. CST. Switching electricity providers could take up to five business days.

What should I do if my power goes out?

Your local utility company handles restoring power during a power outage. If you lose power, contact your utility, not your provider. To learn more about your utility company and how to contact them, visit our complete list of utility companies.

Where does Texas electricity come from?

Most of Texas’ electricity comes from natural gas. Nuclear, solar, and wind energy also contribute heavily to the state’s energy mix. As Texas continues to invest in different power sources, electricity rates could decrease as capacity grows.

How can I lower my electricity bill in Texas?

One way to lower your monthly electricity bill in Texas is to switch electricity plans with a lower rate. Securing low rates is often easier during seasons when demand is lower, such as spring and fall. Rates can change daily, so check the Choose Energy marketplace today to find out which company has the best electricity price for your usage. You can also lower your energy bill by using less electricity each month.